nuOct 29, 2026, 13:46

ECB keeps main interest rate at 2.5 percent

The European Central Bank has kept its key interest rate at 2.5 percent, choosing to pause further increases despite inflation reaching a three-year high of 3.8 percent in the eurozone. The rise in living costs is driven by elevated fuel prices resulting from the conflict in the Middle East.

The European Central Bank has decided to maintain its key interest rate at 2.5 percent, opting for a pause despite ongoing inflationary pressures within the eurozone. This decision follows previous rate hikes of a quarter percentage point in both June and September, which were implemented to combat rising costs. Economists had widely anticipated this pause despite the economic challenges currently facing the region.

The eurozone is currently grappling with inflation reaching 3.8 percent in September, the highest level recorded in three years and significantly above the bank's target of approximately 2 percent. This increase is largely attributed to surging global fuel prices caused by the conflict in the Middle East, which has driven up the cost of living for consumers. Consequently, expenses such as vehicle fueling have become substantially more expensive compared to earlier in the year, when inflation stood at 1.9 percent in February.

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Based on reporting by nu. Translated and condensed by LocalHeadlines.

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